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Quarterly revenues increased 120% year over year to $183.7 million. The year over year increase in revenues for the quarter was attributable to the acquisition of Azur Pharma and EUSA Pharma. Strong sales of Xyrem also contributed to revenue growth. However, fourth quarter revenues were below the Zacks Consensus Estimate of $186 million.

Full-year earnings came in at $4.39 per share, up 42.9% from the prior year. The Zacks Consensus Estimate for the full year was $4.36 per share. Full year revenues increased 115% to $586 million. This was also below the Zacks Consensus Estimate of $593 million.

Quarter in Detail

In the fourth quarter of 2012, Xyrem sales increased 58% to $113.5 million. Jazz Pharma stated that during the quarter approximately 10,450 patients were on Xyrem compared to 9,300 in the year-ago period.

Jazz Pharma’s selling, general and administrative expenses during the quarter shot up 68.7% to $61.3 million.

Research and development expenses during the quarter increased 93.3% to $7.2 million. The increase in operating expenses was attributable to the increase in human resources and business expansion costs resulting from the Azur Pharma and EUSA Pharma integration.

2013 Outlook

For 2013, Jazz Pharma expects adjusted earnings in the range of $5.70 to $5.90 per share. Share based compensation expense is expected in the range of $48-$50 million.

Revenues are expected in the range of $805-$835 million. Xyrem net sales are expected in the range of $530-$540 million. Meanwhile, Erwinaze net sales are expected in the range of $155-$165 million.

Moreover, the company believes Luvox CR may face generic competition in the form of oral formulation of Clozapine Versacloz which is expected to be launched this year. Due to the generic competition, revenues in the psychiatry business are expected to decline on year over year basis.

Adjusted selling, general and administrative expenses and research and development expenses are expected in the range of $260-$275 million.

Announces Licensing Deal

In addition to announcing fourth quarter results, Jazz Pharma announced a licensing agreement with Concert Pharmaceuticals, Inc. for the development and commercialization of deuterium-modified sodium oxybate (D-SXB). The lead candidate under this agreement is C-10323.

As per the terms of the agreement, Jazz Pharma will have global commercial rights to C-10323. The company will be responsible for the development of C-10323. Jazz Pharma is liable to make an upfront payment to Concert Pharma as well as payments on the achievement of milestones. Jazz Pharma will also pay tiered royalties on global sales of any D-SXB product.

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